A 641-unit mixed-income community on St. Ann’s and Eagle Avenue In the Melrose section of the Bronx
Bronx, New York – October 26, 2011 – The New York City Housing Development Corporation (HDC), The New York City Housing Preservation & Development (HPD), The U.S. Department of Housing and Urban Development (HUD), Capital One Bank, Neil Weissman of the Jackson Development Group and Amnon Shalhov of Joy Construction and others celebrated the ribbon-cutting for St. Ann’s Terrace, one of the largest affordable housing complexes to be developed in the Melrose section of the South Bronx under the City’s housing plan. Bounded by St. Ann’s Avenue, East 156th Street, Eagle Avenue and East 159th Street, this 641-unit mixed-income multi-family development is made up of eight newly constructed buildings. Built on a 3.5-acre St. Ann’s site, which was the largest vacant parcel of land in the Melrose Commons Urban Renewal Area, St. Ann’s Terrace is a mixed-income residential community with ground floor retail space and underground parking that brings not only new affordable housing, but new economic opportunity to the area.
The St. Ann’s Terrace has been developed under Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP), an multi-billion dollar initiative to finance 165,000 units of affordable housing for half a million New Yorkers by the close of the 2014 fiscal year. To date, the plan has funded the creation or preservation of over 125,300 units of affordable housing across the five boroughs; with 37,856 units in the Bronx, and more than 6,545 of those units in Bronx Community Board 1 where St. Ann’s Terrace is located.
“Three and a half acres of land can make a massive impact on a community. It can lie fallow and underused, blighting the area and stifling its growth – or a decision can be made to redevelop and reclaim it from the vestiges of the past,” said HPD Commissioner Mathew M. Wambua. “Melrose was once considered one of the worst neighborhoods in the nation. Look at us now. From here at St. Ann’s Terrace and throughout this Community Board we have created more than 6,500 new homes, and that’s not just a number. We’re talking about families and hardworking New Yorkers who can now find a safe, quality affordable home coupled with retail and other opportunities in the South Bronx. And most of all, this is about people choosing to move here and put down roots, instead of moving out. That’s progress and that’s what we’re here to celebrate.”
“Nowhere else is the extent of the redevelopment of The South Bronx more evident than from the rooftops of these new buildings on St. Ann’s Avenue,” said Marc Jahr, President of HDC. “There is new housing visible in every direction. Months ago this was derelict, vacant land. It is a testament to the vision and breadth of the Mayor’s housing plan that this property now holds 641 rental apartments and more than 50,000 square feet of retail space. Our investment has created jobs, homes and opportunity in Melrose – which was once the poster child for urban decay and disenfranchisement. Today we celebrate the continued rebirth of a neighborhood and the ongoing revival of a community. St. Ann’s Terrace is one of the largest newly constructed affordable housing developments citywide. In the Bronx alone our housing programs have financed the creation or preservation of 37,856 units, with and more than 6,545 of those being in Community Board 1, where St. Ann’s Terrace now stands.”
St. Ann’s Terrace offers 641 residential apartments, 50,000-square-feet of ground floor retail, and parking spaces for approximately 400 cars. The eight building development serves low- to moderate-income households. Buildings A, B and H provide housing for moderate- to low-income tenants at 80% AMI ($61,450 for a family of four) and 60% AMI ($46,080 for a family of four). These buildings include 21 studio units, 48 one-bedroom units, 76 two-bedroom units and 19 three-bedroom units. There are also two Superintendent units. Buildings C, D and E will serve low-income tenants at 60% AMI ($46,080 for a family of four) and 50% AMI ($38,400 for a family of four). These buildings include 37 studios, 111 one-bedroom units, 146 two-bedroom units, and 17-three bedrooms. There are also three Superintendent units. Lastly, Buildings F and G are for low-income families, serving tenants at 60% AMI ($46,080 for a family of four) and 40% AMI ($30,720 for a family of four). These buildings include 17 studios, 58 one-bedrooms, 74 two-bedrooms (inclusive of one superintendent’s unit), and 12 three-bedrooms.
Commercial and retail space on site has been leased. Brightside Academy, a regional daycare operator, occupies 8,000-square-feet of commercial space. A supermarket occupies 15,000-square-feet of the commercial space and discount retail-chain Family Dollar occupies 8,000-square-feet of retail space. An additional 5,500-square-foot has been leased to a Laundromat/dry cleaning establishment.
The 3.5 acre parcel of land that encompasses the entire site was once home to the Ebling Brewery, which operated from the late 1800’s to the mid part of the 20th Century. The brewery aged and cooled its beer in the natural rock caves that were on the St. Ann’s development site. Following the closure of the brewery, the site was turned into a parking lot.
“The Housing Partnership is proud to have played a role as the title holder to the property,” said Dan Martin of the Housing Partnership. “It is clearly through the vision and foresight of Jackson Development Group and Joy Construction that projects like St Ann’s come to fruition even in difficult economic times. It is through this vision that The Bronx will benefit from 641 units of affordable housing along with much needed supermarket and retail shopping.”
“The transformation of St. Ann’s is a microcosm of the transformation of the Bronx,” said Neil Weissman, President of the Jackson Development Group. “Through hard work and commitment, affordable housing and economic development represent the Bronx of the future and St. Ann’s terrace is nearly a 1 million square foot testament to that. JDG is proud to have played its role and is grateful for all the support that made this a reality.”
“Joy Construction has been building in the Bronx for almost twenty years and to see project like St. Ann’s Terrace get financed and built, especially in these turbulent economic times, is truly amazing,” said Amnon Shalhov, President of Joy Construction. “But like any great achievement, this could not have been accomplished without the tireless work of everyone who worked on this development. St. Ann’s Terrace represents the best in community investment and public private partnerships; I am humbled and grateful that Joy Construction was part of it.”
In order to capitalize the $218.9 million in total development costs, HDC issued $98.9 million in Stand Alone Tax-Exempt Bonds, including $25.83 million in recycled Tax-Exempt Volume Cap. $42.3 million of such bonds was provided in permanent financing. Capital One Bank, JP Morgan Chase and Bank Leumi USA all participated in providing the credit enhancement for the respective bond issuances.
Additionally, HDC provided $45.3 million subordinate loans from corporate reserves and facilitated an additional $3.1 million loan from the 421a Fund Loan. NYC HPD issued a total of $35.7 million in City Capital funds and $2.42 in HOME funds as additional loans to the project. The project also received $3 million in financing from the Borough President’s Reso A funds and a total of $46.65 million in equity has been funded through the syndication of Low-Income Housing Tax Credits (LIHTC) by Hudson Housing Capital. The developer invested over $15.2 million of sponsor equity into the deal.
“Fostering the economic well-being of local communities and their residents is a vital part of our work at Capital One Bank,” said John Habermann, Bronx Market President for Capital One Bank. “We are committed to working with our partners to provide more high-quality, affordable housing options for New York’s low- and moderate-income families and individuals; and we believe this development will help to expand opportunities for St. Ann’s residents while contributing to the overall growth and prosperity of the community.”
“Hudson is very proud to have played a role in such a significant development in the south Bronx,” said Joe Macari, Managing Partner of Hudson Housing Capital. “Participating in the development of affordable housing across the country, St. Ann's stands out as very ambitious and a truly revitalizing force in the community. Our congratulations to the Jackson/Joy team and thanks to all the partners who made this possible.”
About the NYC Housing Development Corporation (HDC):
The Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family affordable housing throughout New York City. In partnership with the NYC Department of Housing Preservation and Development, HDC works to implement Mayor Michael R. Bloomberg’s New Housing Marketplace Plan to finance the creation or preservation of 165,000 affordable housing units by the end of the 2014 fiscal year. The New York City Housing Development Corporation is rated AA by S&P and Aa2 by Moody’s.
About the NYC Department of Housing Preservation and Development (HPD)
HPD is the nation’s largest municipal housing preservation and development agency. Its mission is to promote quality housing and viable neighborhoods for New Yorkers through education, outreach, loan and development programs and enforcement of housing quality standards. It is responsible for implementing Mayor Bloomberg’s New Housing Marketplace Plan to finance the construction or preservation of 165,000 units of affordable housing by 2014. Since the plan’s inception, more than 125,300 affordable homes have been created or preserved. (www.nyc.gov/hpd)
About Mayor Michael R. Bloomberg’s New Housing Marketplace Plan:
New York City’s affordable housing program to build or preserve 165,000 units of housing
— enough to house half a million New Yorkers — is the most ambitious and productive in the nation—creating housing as well as jobs for New Yorkers. Since the plan’s inception, more than 125,300 affordable homes have been created or preserved.
The Plan has been recast to maintain production momentum while confronting head-on the economic challenges facing the City, the State, the housing industry, the financial sector and individual New Yorkers and their families. In order to fulfill the NHMP goal of 165,000 units, HPD and the NYC Housing Development Corporation (HDC) are responding to market realities and focusing on three primary goals: strengthening neighborhoods, expanding the supply of affordable and sustainable housing and stabilizing families by keeping them in their homes. To read more about the NHMP, please visit http://www.nyc.gov/html/hpd/html/about/plan.html
About Jackson Development Group (JDG):
A New York based Development Company that specializes in residential development and construction. Since 1999, JDG has developed over 300 homes in and throughout Brooklyn and the Bronx as well as nearly 2,000 units of affordable housing.
Joy Construction Corporation:
A diversified construction company with a focus on general contracting began its operations in 1995 with the rehabilitation of one commercial space. During the past 16 years, Joy has grown exponentially, completing over 60 buildings and 6,000 units of affordable housing.
About Capital One Bank:
Capital One Financial Corporation is a financial holding company whose subsidiaries, which include Capital One, N.A. and Capital One Bank (USA), N. A., had $126.1 billion in deposits and $199.8 billion in total assets outstanding as of June 30, 2011. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index. www.capitalone.com